US-Canada Trade Talks Near Deal with Key Tariff Cuts

The US and Canada are nearing a trade agreement that could see key tariffs cut as part of a proposed deal. A source familiar with the matter said that the top-line tariff rates on Canadian-built cars and trucks may be reduced to 15% from the current 25%. This would come before deductions for US-produced content, bringing the effective rate substantially lower.

The proposed deal would also halve the top-line tariff rates on Canadian steel and aluminum to 25%, although industry sources say these lower tariffs would apply only to a certain import volume under a quota arrangement. The quota would likely be set at 4 million metric tons per year, with any imports above that level subject to the original 50% steel tariff.

Washington imposed the steel, aluminum, and autos tariffs last year under a national security law, prompting Canadian countermeasures. Negotiators face a Saturday deadline for the potential deal, although there is no clear indication whether auto tariffs will be resolved this week or delayed until a broader scheduled review of the US-Mexico-Canada trade deal.

US Trade Representative Jamieson Greer said that negotiators had reached an agreement that would protect American workers and strengthen the North American economy. Canadian Prime Minister Mark Carney briefed provincial leaders on the state of discussions, with some expressing caution about making further concessions to the US.